Germany and Brazil have agreed to pursue a new double taxation treaty following high-level talks in Hanover, marking a significant step in reviving fiscal cooperation after a 20-year gap alongside broader agreements on trade, technology, and climate action. 

RF Report

Brazil and Germany announced plans to intensify negotiations on a new income tax treaty during their Joint Declaration on the 3rd German-Brazilian Intergovernmental Consultations in Hanover on 20 April 2026.

The proposed agreement aims to boost investment and strengthen commercial ties between the two nations, replacing the 1975 treaty that was terminated effective 1 January 2006.

Federal Chancellor Friedrich Merz and President Luiz Inácio Lula da Silva chaired the consultations, which produced a comprehensive framework for bilateral cooperation extending well beyond taxation. The talks resulted in multiple declarations and agreements spanning technology, climate action, and strategic security.

The two governments welcomed the EU-MERCOSUR agreement as a milestone achievement, with its provisional application beginning on 1 May 2026. This development complements their commitment to developing resilient value chains for critical minerals and strategic resources.